85k limit, how important is it?

cwep2

Albermarle said:

A good analysis.
Out of interest where would you place providers like Chase, or Marcus, backed by huge US banks ?
I also have thought that a smaller savings provider that was an offshoot of a household name, like Ford Money or Tesco bank, would be pretty safe as the Mothership would come to the rescue to protect their brand.

Well Chase is a subsidiary of JPMorgan - one of the GSIBs. Marcus is a subsidiary of Goldman Sachs also a GSIB, but they are also primarily an investment bank rather than a retail bank and have been pulling out of retail offerings (in the US, eg their tie up with the Apple Credit Card), so purely on that basis I'm less confident GS would value their brand as much! But that's splitting hairs to some extent. I'd put them up in the third tier with the UK clearing banks.

You are right that Ford/Tesco would not want their brands sullied by a failure, but since their main business isn't finance, (most) people won't stop shopping at Tesco or buying Ford cars because a banking offshoot went under. It gives them better chance of surviving a blip than a Chip or Tandem or Al Rayan, but they are niche banks without millions of customers, so you are relying on the parent company to step in rather than the government.  

subjecttocontract

Dont know if it's already been mentioned......havent read the whole thread :-
* Joint accounts have £170,000 FSCS protection.
* NS&I are not limited to £85,000 protection.

london21

Depends on the bank but or peace of mind better to spread it.

tiger135

I was thinking of putting 50k in each account , so 50k in virgin at 5.12.
The next options are:
shawbrook
paragon
skipton
aldemore
post office
premium bonds
any experience of those? 
just want an easy to open and easy to move money about.
at least virgin doesnt use these dated card readers nationwide insists on!

Bigwheels1111

tiger135 said:

I was thinking of putting 50k in each account , so 50k in virgin at 5.12.
The next options are:
shawbrook
paragon
skipton
aldemore
post office
premium bonds
any experience of those? 
just want an easy to open and easy to move money about.
at least virgin doesnt use these dated card readers nationwide insists on!

Why these banks ?.

Do they have the best rates on the market ?.

No is the simple answer.

So why ?.

Look here,

https://moneyfactscompare.co.uk/

To left Savings,

Then Fixed, Regular, easy access or ISA etc.

Next select rate order.

Best rates are shown.

A lot of the banks toy will see you might not of heard of but are all uk regersted banks with FSCS protection.

Dont limit you interest just because you dont know the bank.

Albermarle

tiger135 said:

I was thinking of putting 50k in each account , so 50k in virgin at 5.12.
The next options are:
shawbrook
paragon
skipton
aldemore
post office
premium bonds
any experience of those? 
just want an easy to open and easy to move money about.
at least virgin doesnt use these dated card readers nationwide insists on!

There are a number of current threads complaining about the service levels from Shawbrook recently.
There are threads going back years complaining about the Post Office savings 'systems' 
If you search Premium Bonds, there are numerous discussions about them.

tiger135

this is why i am being careful, not just jumping at the highest rates. i dont want to have issues setting up, using or withdrawing money later from the account. 
thats why ive left my savings in nationwide for a while despite only paying 4.25. i already had a virgin login from an old mortgage so wasnt too worried about opening their 5.12 account and already transferred some there.
just looking for accounts around 5% either easy access or limited withdrawal that are easy to use.

Thumbs_Up

Hope you got the answers you needed, can’t help because I’m not very good with money. Any way your name tiger135 intrigue me, google search suggested this -

I'm more interested in Tiger 131. Unfortunately a big premium bond win won't buy me one of these -

subjecttocontract

That's a Gerry built tank, you don't want one of them. They had loads of them in the 1940s and still lost so they can't be that good.

Thumbs_Up

subjecttocontract said:

That's a Gerry built tank, you don't want one of them. They had loads of them in the 1940s and still lost so they can't be that good.

I could answer this a 100 different ways but our esteem members will get a bit sniffy with me (money saving website)

But yes WW2 was a numbers game, Germany roll the dice and lost.